Adani Green Secures $1.36 Billion Construction Loan for World’s Largest Renewable Energy Park

Newzdaddy Business Updates

Adani Green Energy Ltd (AGEL), a leading player in renewable energy, has achieved a significant milestone by securing a follow-on funding of $1.36 billion, elevating its Construction Financing Framework to an impressive $3 billion. This substantial funding, one of the largest Project Finance deals in Asia, is aimed at supporting the development of the world’s largest Renewable Energy Park in Khavda, Gujarat.

Key Details:

1. Project Overview:

   • AGEL’s ambitious project in Khavda aims to develop the world’s largest Renewable Energy Park, with an initial stage capacity of 2,167 MW.
   • The park is a crucial part of AGEL’s vision to achieve 45 GW of operating renewable capacity by 2030, contributing significantly to India’s net-zero journey.

2. International Bank Consortium:

   • Eight renowned international banks, including BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank Ltd, and others, have participated in the $1.36 billion funding.
   • These banks, returning lenders since AGEL’s initial project financing in March 2021, showcase confidence in AGEL’s construction framework and growth vision.

3. Green Certification and Sustainability:

   • The funding facility has received Green Loan certification from Sustainalytics, emphasizing AGEL’s commitment to sustainability.
   • The certification highlights AGEL’s alignment with Green Loan principles and its significant contributions to Sustainable Development Goal 7 (affordable and clean energy).

4. Leadership Statements:

   • Mr. Vneet S Jaain, MD of AGEL, expressed gratitude to the consortium for their trust, emphasizing the historic nature of extending the Construction Financing Framework to $3 billion.
   • Mr. Amit Singh, CEO of AGEL, highlighted the funding’s validation of their expertise in renewable energy projects and commitment to building a sustainable future.

5. Role of International Forums:

   • The funding announcement coincides with the 28th United Nations Climate Change Conference (COP28), underlining India’s dedication to accelerating climate action and energy transition.

6. Banking Partners’ Roles:

   • DBS Bank Ltd, MUFG Bank, Ltd, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation played key roles as Co-Green structuring banks.
   • Coöperatieve Rabobank U.A. served as the Documentation and Structuring Bank, while MUFG Bank, Ltd. acted as the Guarantee structuring bank.

7. Legal Representation:

   • Latham & Watkins LLP and Saraf & Partners represented AGEL as the borrower’s counsel.
   • Linklaters and Cyril Amarchand Mangaldas served as counsel for the lending banks.

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